Grove Collaborative faces operational risks from adopting generative and agentic AI, relying on third-party platforms.
“We are increasingly incorporating artificial intelligence (“AI”) and data analytics into our platform and operations. Our ability to compete effectively depends in part on our capacity to adopt these technologies in a timely and responsible manner. If we fail, or are perceived to have failed, to keep pace with competitors' or retail partners’ use of AI to improve operating efficiencies, develop commercial insights, or anticipate consumer preferences, our competitive position, market share, and financial results could be adversely affected. The adoption of AI technologies (including generative AI and autonomous or "agentic" AI systems) also introduces operational risks. AI systems may produce inaccurate, biased, or unreliable outputs that could lead to, among other things, errors in demand forecasting, procurement, pricing, inventory management, or fulfillment, or inaccurate or misleading customer-facing content, including with respect to product ingredients, benefits, or sustainability attributes, which could expose us to consumer protection claims. We rely on third-party AI platforms and service providers, and disruptions, errors, security vulnerabilities, or other issues in those systems could harm (including interrupt) our operations and otherwise expose us to liability. Additionally, the use of AI tools by our employees, contractors, service providers, or other third parties with whom we work may inadvertently disclose confidential information, compromise trade secrets, o”